can we borrow enough ? and do we have a default !?

freem17

Hi,

Basically weve seen a new build house we like for £180k.

Hubbie earns £22500
Me £13k
2 kids. pay £560 per month in childcare - i here some lenders take this into account, some dont ? Currently get £6500 pa in child benefit and childcare tax credits.

Just paid off our only o/s debt of £500 credit card and £160 store card. so zero debts.

Have £36k gifted deposit (plus other savings for sols fee etc)

However one little blip - we both appear as "excellant" on credit ref agencies, but my hubbies pays £5 per month to capquest.
Bascially he had £250 quid he spent on an online only account 5 yrs ago, lost login details couldn't log on to pay it off, went into branch with id to get logins they would help as online only account, ended up not being able to login to pay it and built up loads of charges £800 - made complaints/disputes re they wouldn't give details to log on and make payment but in end we got fed up going back and forth and agreed to pay £5 per month to capquest - However we've checked all 3 cred ref files and its NOT mentioned anywhere - as its so long ago we're not sure if we came to an arrangement that they wouldnt class as default as 50/50 blame , no paperwork either?

So is it a default ? its still being paid £5 per month, how will it affect mortgage, if its possible to even borrow what we need ?
Have spoken to one advisor who said to jsut go with a lender who wont request bank statements and they wont see it ! ?

Also if we can't borrow what we need, our mother in law has agreed to cover childcare costs so it doesn't impact affordability (obv then to match income will go down as wont claim childcare tax creds)

Sorry this is so long -any answers anyone please

Dave_Ham

This all sounds achievable and you may have had a result with the default..

Just re-read and nothing in your post would worry me...

Good luck

freem17

Thanks i was hoping you'd reply !!
Achievable even with the childcare cost or let mother take over it? Won't they pick up on the default if they request bank statements ?
Any suggestions of lenders this is likely to be possible with ?

Thanks again

Dave_Ham

Yeah - should be ok if presented to the right lender in the right manner...

You will not get the best buy rates you see in the Daily Mail, although you should get fair rates from a high street lender...

Issue you may come up against is the developer telling you that you have to use their mortgage broker and they may not be skilled enough..

All the best...

freem17

Yep they have said that !! These are the ones who have said we'll pick a lender won't ask for bank statements and i thought it seemed a bit dodgy ?! I don't think they'll allow us to use a different company - oh no worried no they'll mess up the application now ! They also said it might be best for mother in law to cover childcare, but again if they do want bank statements there will be previous payments on there for childminder.

Sorry to ask again, can you give any indication of what lenders this may work with - really appreciate your help

Dave_Ham

To be honest, its not a good call to name drop lenders as I do not know enough of your circumstances and could constitute advice.

I fear it may be irrelevant as you have to use their broker and more worrying they are probably tied to specific lenders or a panel..

Do you have to buy this new build, nothing else non new build...?

freem17

Well we really love it !! I no no it not supposed to be based on just emotions but ...... I also think we're getting a good deal again i'm sure you'll say im crazy as its a new build - its already built prev sale fell through so as its stock ready to go, price is dropped significantly £20k off asking price but obv u expect to get that down a bit (sold price on RM shows nxt door paid £10k more for theres) plus its got extras we're not having to pay for that prev purchaser requested. I'm kind of set on it now - I think possibly the brokers are whole of market, they don't just work through the builder - you could go online and approach them direct for any purchase ? Sorry I didn't mean to try and hold you to any lender name or ask advice !

I just thought maybe i could help steer them in a particular direction if i knew which was my best bet !

Thanks

Dave_Ham

Only advice I can give is that they need to apply for a mortgage that they will be able to get you..

Steer clear from Nationwide, Accord, HSBC, First Direct, Britannia & Post Office...

I was not judging the new build, seems like you have done your research but moreover mortgages are easier on non new builds.

Bounce any solutions past us by all means - good luck

freem17

Thanks and will do !